Doosan Bobcat Started to Perform in 1Q18 as We Expected

Doosan Infracore Results Positive in 1Q18, Strengthened Balance Sheet to Support Expansion Strategy

Equity Analyst

Gervin Gayan

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Bottom-Up

<p>During the course of 1Q2018 Doosan Bobcat Inc (KRX: 241560) has fallen to KRW 32,300 (-11%), mainly due to the impact of selling one of their business segments. This resulted in concerns about the company’s growth prospects but we believe the core compact construction machinery business segment has a healthy outlook for growth mainly supported by growth in housing construction in the US and Europe. As such, we view the company’s increasing concentration in its highest margin niche segment as a positive, not a negative.</p>

During the course of 1Q2018 Doosan Bobcat Inc (KRX: 241560) has fallen to KRW 32,300 (-11%), mainly due to the impact of selling one of their business segments. This resulted in concerns about the company’s growth prospects but we believe the core compact construction machinery business segment has a healthy outlook for growth mainly supported by growth in housing construction in the US and Europe. As such, we view the company’s increasing concentration in its highest margin niche segment as a positive, not a negative.

Doosan Bobcat Inc

18% Upside for Doosan Bobcat?